Orange Company produces E-Reader. The following cost information from last year is available:

Fixed cost $6 per unit

Variable cost $45 per unit

Selling price $60 per unit

Units sold 20,000 units

The company is considering a higher resolution of display. The use of higher resolution display would result in the following:

Increase in variable cost $3 per unit

Elimination of one quality inspector whose annual salary is $39,000

Annual sales in units will increase to 24,000 units

If the company uses the higher resolution display this year, what is the impact on its break-even point in unit sales? (Round the answer to the nearest unit.)

A. Break-even point in unit sales will decrease by 2,000 units

B. Break-even point in unit sales will decrease by 2,600 units

C. Break-even point in unit sales will decrease by 1,250 units

D. Break-even point in unit sales will decrease by 4,400 units

E. Break-even point in unit sales will increase by 6,750 units